Car Depreciation Calculator

How to use this calculator

Enter the original purchase price or MSRP, then provide the car's current age in years and total mileage. Select the vehicle's overall condition (excellent, good, fair, or poor) and the type (sedan, SUV, truck, luxury, sports, minivan, or EV). The calculator applies industry-standard depreciation curves adjusted by condition and vehicle type, then accounts for mileage relative to the 12,000 miles/year average. The result shows estimated current value, total depreciation amount, and key metrics for understanding resale value.

Factors that affect depreciation

• Age (years): Depreciation follows a steep curve in year 1 (20% loss), then moderates. After 5 years, depreciation rates slow to about 8% annually. The oldest cars still have value if maintained.
• Mileage: The average car is driven about 12,000 miles per year. Mileage above or below this baseline affects value -- high mileage (80,000 miles at age 5) significantly reduces value; low mileage (40,000 miles at age 5) supports higher resale prices.
• Condition: A well-maintained car with minor wear retains much more value than a car with visible damage, interior stains, or mechanical issues. Condition often matters more than mileage alone.
• Vehicle type: Trucks and SUVs hold value better because demand remains strong; sedans depreciate faster. Luxury vehicles depreciate much faster due to higher insurance, maintenance, and repair costs. EVs face unique depreciation pressures from battery concerns and rapid tech updates.
• Market factors: Fuel prices, interest rates, new model releases, and supply chains all influence used car values. A recession may lower used car demand; a new semiconductor shortage can push used cars higher.

Tips for success

• New cars lose approximately 20% of their value in the first year alone -- buying a 1-2 year old vehicle avoids the steepest drop while still getting a relatively new car.
• Trucks and SUVs tend to hold value better than sedans and luxury vehicles in most markets, especially in rural regions where utility matters more than prestige.
• Low mileage helps resale, but condition matters more -- a well-maintained 80,000-mile car outsells a neglected 40,000-mile car every time.
• Colors affect resale: neutral colors (white, black, silver, gray) depreciate less than unusual colors. Bright colors and unpopular shades can reduce value by 5--10%.
• EVs are depreciating faster than gas vehicles in the used market due to rapid technology improvements and new model launches. Battery degradation concerns also affect resale value.

Practical note

Common depreciation myths

• "Cars lose half their value in 3 years" -- This is only true for some luxury brands; the average car retains 60--70% of value after 3 years. Buying a 3-year-old car is often an excellent value compared to new.
• "Low mileage always means higher value" -- Not if the car sat unused with deteriorating seals, tires, and battery. A 40,000-mile car that sat in a garage can be worth less than an 80,000-mile car driven regularly and maintained.
• "Red cars depreciate faster" -- Mostly a myth. Condition and model matter far more than color. Neutral colors (white, black, silver) are easier to sell because they appeal to more buyers, but a red car in excellent condition is worth more than a white car in poor condition.
• "Modifications increase value" -- Almost always false. Aftermarket wheels, lowered suspension, body kits, and custom paint almost always decrease resale value. Buyers want stock cars with warranty transfers. Modifications appeal only to niche buyers and usually recover less than cost.

FAQ